PrefBlog

Life & Banc Split Corp. has announced:

that it has filed a preliminary prospectus relating to an offering of warrants to Class A shareholders of the Company. Each Class A shareholder will receive one half warrant for each Class A share held on a record date which will be set upon filing of the final prospectus.

One warrant will entitle the holder to purchase a Unit (consisting of one Class A share and one Preferred share of the Company) upon payment of the subscription price, which will be determined as the lesser of: (i) $19.31 (which is the sum of (a) the most recently calculated NAV per Unit prior to the date hereof and (b) the estimated per Unit fees and expenses of the offering), and (ii) the most recently calculated NAV per Unit prior to the date of filing the final prospectus plus the estimated per Unit fees and expenses of the offering. The Company has applied to list the warrants and the Class A shares and Preferred shares issuable on the exercise thereof on the TSX.

Successful completion of the warrants offering will provide the Company with additional capital that can be used to take advantage of attractive investment opportunities and it is also expected to increase the trading liquidity of the Class A shares and Preferred shares and reduce the ongoing management expense ratio of the Company.

If fully subscribed, the 50% increase in issue size will be a very welcome addition to the $100-million-odd reported in the 2009 Annual Report.

LBS.PR.A was last mentioned on PrefBlog when it was downgraded to Pfd-3 by DBRS. LBS.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.

This entry was posted on Friday, May 14th, 2010 at 3:10 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.